Repairing Postgresql after upgrading to OSX 10.7 Lion

It's a PATH issue. Mac OSX Lion includes Postgresql in the system now. If you do a which psql you'll likely see usr/bin/psql instead of usr/local/bin/psql which is HomeBrew's correct one. If you run brew doctor you should get a message stating that you need to add usr/local/bin to the head of your PATH env variable.

Editing your .bash_profile or .profile, or whichever shell you're using and adding: export PATH=/usr/local/bin:$PATH

as the first export for the PATH then either quit you shell session or source your file with source ~/.bash_profile and it should now be OK again.

For those of you who are interested, I pieced together the solution. All I needed was to add

host: localhost

to the database.yml for my environment and all was gravy.